What Is A Family Floater Health Insurance Plan?

Posted by Arjit Chalmela on August 23rd, 2019

A health insurance policy is one of the most important policies that you can have. It protects you and your savings from the rising cost of quality medical care by providing reimbursement for hospitalization spends and certain specified pre and post hospitalization spends. Depending upon the type of coverage you opt for, you can secure your savings in case of any medical emergencies.

When looking at health insurance plans, you can opt for a single person health insurance plan or you can opt for a floater plan. A family floater health insurance is a policy that covers two or more individuals under the same policy. This covers the specified number of people on payment of a single insurance premium. The insurance premium can be paid annually, half yearly or monthly.

If you’re looking at family floater policies, consider these two types:

Medical insurance:

This is a standard health insurance which covers the cost of hospitalization and the cost of treating specified illnesses. Pre-existing diseases may also be covered after a waiting period. The claims are generally cashless depending on the hospital and the insurer.

Critical illness insurance:

A critical insurance plan pays out a determined compensation in case any of the policyholders are diagnosed with the specified critical illness.

Family floater health insurance plans work out to be cheaper if the age of the insured are lower. Like single person health insurance, the premium for family floater health insurance plans increases if the age of the insured increases. Typically, insurers cover the policyholder, spouse and dependent children under one floater policy and the parents under another floater policy.

If you want to look at a family floater plan, you can visit any insurance aggregator website and compare the premiums for an individual plan and a family floater plan. You can take the final decision based on the coverage and the yearly premium involved.

However, one thing to remember is that in a family floater plan, the sum insured covers illness claims by all the policyholders. For example, if the sum insured is Rs. 3,00,000 and the family makes a claim of Rs. 200,000, the balance sum insured of Rs. 1,00,000 is available to be claimed by any of the family members for the rest of the year.

But before you opt for a family floater health insurance, be sure to check the inclusions and exclusions. You also need to check the age of the policyholders so that you have coverage before the policy lapses. If you have a floater for your parents or in laws, then check the process to enhance the sum insured as it will be necessary in the future.

A floater policy is a good option for families looking to combine the benefits of health insurance. Be sure to read the terms and conditions before you buy this.